Exxon to begin drilling development wells for Liza Phase 2 early next year

ExxonMobil Guyana will begin drilling development wells for the 220,000 barrels per day Liza Phase 2 Development project early 2020 and is already looking to bring in a fourth drill ship by the end of this year, to facilitate the process.

So says GeoScience Upstream Manager at ExxonMobil Guyana, Doug McGehee, speaking at the launch of the Georgetown Chambers of Commerce and Industry (GCCI) Business Guyana magazine on Friday evening at the Pegasus Hotel in Georgetown.

“We’re going to need to start drilling the development wells for Liza Phase 2 early next year. So, if we have three rigs; one of them – Noble Bob Douglas – drilling development wells for Phase 1, next year another one of those rigs that is now drilling exploration wells will start drilling development wells – the Noble Tom Madden. That leaves us only one rig drilling exploration wells,” he said.

“Well if we keep finding oil, we are going to need another rig; so that’s why we are bringing in a fourth rig,” the GeoScience Upstream Manager told those gathered.

Finding oil is what the company has been doing in the South American country, almost on a nonstop basis since 2015 when it made the giant Liza discovery on the now prolific Stabroek Block. ExxonMobil has made a record 13 discoveries with just two dry holes. Current estimated recoverable reserves exceed 5.5 billion barrels of oil equivalent and analysts believe more discoveries are on the way from multiple play types yet to be explored.

On May 3 the company announced that it will be proceeding with the US$6 billion Liza Phase 2 Development project after final approval was granted by authorities in Guyana.

A total of six drill centers are planned as well as approximately 30 wells, including 15 production, nine water injection and six gas injection wells. Phase 2 startup is expected in mid-2022 and will develop approximately 600 million barrels of oil.

Meanwhile, first oil from the 120,000 barrels per day Liza Phase 1 Development is set for Q1 2020.